Organizations Can Easily be Taken Advantage of by the...

In the text, professor O’Hara is talking about how organizations will always have accidents. In other words, the author tries to explain that organizations by their nature always face some challenges or conflicts, whether it is economic or internal. There are several factors that cause the agency to have accidents. For instance, lack of oversight, segregation of duties, checks and balances, accountability, and etc.; that all may become a part of an accident in organizations. Another example is when there are politics involved in the organization; it can be another accident as well. Especially, during the elections people or organizations with their own agendas give big donations to political parties so they can buy votes instead of winning†¦show more content†¦The key to understand the Cressy’s theory is we have to remember that in order a fraud to occur all three elements must be present. As we discussed afore mentioned about non-shareable financial need, a pe rson must have an opportunity in order to commit a crime without being caught. Perceived opportunity constitutes the second element in the fraud triangle. If a person sees an opportunity to steal the cash, they will steal. Therefore, in order to prevent the fraud or stealing, we have to eliminate the opportunity in the job place by increasing the monitoring over the employees. The last and third factor in the fraud triangle is the rationalization. Cressey describes rationalization as a necessary component of the crime before it takes place. In other words, he said that it is a part of the motivation for the crime. In that category, the embezzler does not see himself or herself as a criminal; they justify their misdeeds before they commit the crime. The rationalization plays the main role while fraudster commits an illegal act in their job place because they try to maintain their concept of themselves as a trusted person. After we commit an organizational fraud, the rationalization will often be abandoned because of the nature of us all. When we commit a first crime, it is always bothers us, but if we repeat the act several times, it becomes easier and easier. (Source is taken from: Association of Certified Fraud Examiners Manual). Moreover,Show MoreRelatedAudit2577 Words   |  11 PagesFraud Auditing and Different type of fraud Introduction Over the years, the role of auditors become increasingly important especially in a capitalist economy as the process of wealth creation and political stability depends heavily upon confidence in processes of accountability and how well the expected roles are being fulfilled. An auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditingRead MoreFraud Auditing and Different Type of Fraud2578 Words   |  11 PagesFraud Auditing and Different type of fraud Introduction Over the years, the role of auditors become increasingly important especially in a capitalist economy as the process of wealth creation and political stability depends heavily upon confidence in processes of accountability and how well the expected roles are being fulfilled. An auditor has the responsibility for the prevention, detection and reporting of fraud, other illegal acts and errors is one of the most controversial issues in auditingRead MoreFraud Triangle15238 Words   |  61 Pages
  
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